The Walt Disney Company (DIS) is again raising prices for its Disney+ streaming service in the U.S. next month. This marks the fourth consecutive year in which Disney has hiked the subscription prices for its streaming plans. The news of the price hikes comes at a time when the entertainment giant is caught in controversy related to the temporary removal of the Jimmy Kimmel Live! show from ABC.
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Disney+ Raises Prices for U.S. Subscription Plans
Disney+ is raising the price of its ad-supported plan by $2 to $11.99 per month. Furthermore, the price of the Disney+ premium plan with no ads will increase by $3 to $18.99 per month, and the annual subscription will now be priced at $189.99 per year, reflecting a jump of $30.
The price of Disney’s Hulu service will also increase, with its ad tier priced $2 higher at $11.99 per month. Furthermore, ESPN Select’s price will increase by a dollar to $12.99. The new prices will be effective from October 21.
Disney has been increasing its subscription prices to enhance the profitability of its streaming business. Notably, Disney’s combined streaming business, which comprises Disney+, Hulu, and ESPN+, reported a profit for the first time for the third quarter of Fiscal 2024. Meanwhile, Disney’s rivals Apple (AAPL) and Netflix (NFLX) also raised prices for their streaming plans this year.
Is DIS Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Strong Buy consensus rating on Disney stock based on 20 Buys and three Holds. The average DIS stock price target of $136.70 indicates about 22% upside potential from current levels. DIS stock is essentially flat on a year-to-date basis.
